UBS On-Air: Market Moves
State of the US Consumer & Brand engagement with Eric Clark (Accuvest)
May 7, 2024
Portfolio Manager Eric Clark from Accuvest Global Advisors discusses the impact of current economic conditions on consumer behavior and spending, including factors like excess savings and cautious spending. They also delve into how brands are adapting to maintain consumer engagement, with insights on successful strategies of value and loyalty-driven brands like Costco and TJ Maxx.
11:44
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Quick takeaways
- Inflation impacts consumer sentiment and spending, leading to cautious habits focusing on necessities over discretionary expenses.
- Brands are adapting to economic conditions by catering to evolving consumer preferences through product differentiation and financial resilience.
Deep dives
Impact of Inflation on Consumer Sentiment
Consumers have been facing higher prices for goods and services due to inflation, impacting their sentiment and spending behavior. While initially having excess savings, continued overpaying has led to a decrease in sentiment among certain population segments. Consequently, consumers are exhibiting more cautious spending habits, focusing on necessities over discretionary expenses like entertainment or travel.
